Axios Pro Exclusive ContentNasdaq buys trading and risk management firm Adenza for $10.5BIllustration: Aïda Amer/AxiosNasdaq (Nasdaq: NDAQ) has agreed to acquire Thoma Bravo-controlled Adenza — which makes software used by banks and brokerages for trading, treasury and risk management — for $10.5 billion in cash and stock.Why it matters: It’s the largest acquisition in Nasdaq’s history, and the deal bolsters the firm’s attempt to secure more predictable recurring revenues.Details: The $10.5 billion deal comprises $5.75 billion in cash and 85.6 million shares of Nasdaq common stock.Nasdaq plans to issue about $5.9 billion of debt to fund the cash component.The deal is expected to close in six to nine months.Between the lines: The acquisition highlights Nasdaq CEO Adena Friedman’s efforts to diversify the exchange’s revenue and transform it into a technology provider for the financial services industry.Roughly 80% of Adenza’s revenue is recurring, and it has a 15% organic revenue growth forecast for the year.Adenza is expected to generate $590 million of revenue this year and add $300 million in pre-tax cash flow.Moreover, its addition is expected to boost Nasdaq’s Solutions Businesses sales as a percentage of total revenue from 71% in Q1 to 77% by year-end, and to raise its
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Nasdaq buys trading and risk management firm Adenza for $10.5B – Axios
